Work

The Economic Costs of NIMBYism: Evidence from Renewable Energy Projects

Year: 2024

Type: article

Abstract: Large infrastructure projects have important social benefits but can also prompt strong local opposition. I estimate the economic costs of NIMBY (not in my backyard) attitudes and local planning restrictions by studying renewable energy projects. Using data on thousands of permitting applications, I show that wind and solar projects can have highly heterogeneous impacts depending on their characteristics and location. In some cases this includes significant external local costs, and I conduct a hedonic analysis to quantify the impact on nearby property values. I then show that planning officials are particularly sensitive to these local costs, especially when wealthy residents are affected. This often comes at the expense of considering the wider social benefits of these projects. These biases in the permitting process create inefficiencies that increased costs and led to substantial underinvestment in renewable energy.

Source: Journal of the Association of Environmental and Resource Economists

DOI: 10.1086/732801

Author: Stephen Jarvis

Language: English

Topic: Social Acceptance of Renewable Energy

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Affordable and clean energy, Sustainable cities and communities, Industry, innovation and infrastructure, Climate action

Open Access status: green

Funders: Fisher Center for Alzheimer's Research Foundation, Deutsche Forschungsgemeinschaft

Awards: G3023023833, G5060839972